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tv   Bloomberg Daybreak Asia  Bloomberg  May 31, 2022 7:00pm-9:00pm EDT

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>> very good morning. welcome to "daybreak australia." i'm haidi stroud-watts in sydney. >> i'm annabelle droulers in hong kong. kathleen: good evening from bloomberg's world headquarters in new york. i am kathleen hays. our top stories this hour. asian investors face a new month with ongoing fears of central bank tightening. wall street closing out may almost exactly where it darted. his plan to fight price pressures starts with central-bank independence. the ukraine war threatens the opec-plus supply pack. >> let's get you straight to some numbers crossing the bloomberg. the final number ticking a
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little bit higher. we are also getting that first quarter gdp number a little bit later on today. that is expected to show the slowdown that we saw and the start of these downward pressure of inflationary expectations as well as inflationary pressures. take a look at the aussie dollar we are seeing some momentum trading so far in this session. let's get you straight to bell for a look at how we are shaping up for the rest of the day. >> first trading day of june about to be upon us. slightly higher open. we saw it lose 3%. in terms of dollar strength, we have seen the yen at a two-week low against the greenback. in terms of eco-data, as you mentioned, the aussie gdp
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figures will be the highlight on the calendar for us today, excepting slowness over the course of the first quarter. as well as the widespread economic and no, -- omicron outbreak. speaking of china, we did see the golden dragon index posted some monthly gain since october over the course of may and that could be another supportive factor for equities here. kathleen: let's take a quick look at what the futures markets are signaling now. basically, it was a volatile day. stocks opened lower after the strong than expected eurozone inflation numbers. consumer confidence in the u.s. showed consumers expecting 7.4 percent year-over-year gain in inflation here. more worries about the 50th this is point rate hike -- 50 basis
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point rate hike. basically closing underwater. ending the month where they started. bond futures continuing to decline a bit. the new york crude holding with a small gain. a lot of those stories from the e.u. banning oil hitting the crude market today. haidi: president biden saying he will respect the fed's independence when it comes to tackling inflation. take a listen. pres. biden: my plan is to address inflation. it starts with a simple proposition, respect the fed, respect the fed's independence. they have a laser focus on addressing inflation just like i am. with a larger complement of board members now confirmed, i know we will use the monetary policy to address the rising prices for the american people. haidi: let's get some analysis
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now. courtney rosen. a little bit of kicking the ball over so what were your big takeaways from the meeting? >> the president wants to take this focus off themselves and to put it on the federal reserve and put it on congress. he is trying to convince voters here in the u.s. heading into a midterm election in november, trying to convince voters that it is not completely up to him in the state of the economy is not entirely his fault or his accomplishment. it is to be shared around so to speak. the consequences come from multiple places here in washington. >> people should watch bloomberg television more often because they know that there's a lot of criticism of the fed right now. with consumer confidence reported show confidence lower in the u.s. but it also showed expectations of inflation climbing even more. no matter what biden says about
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it, is this a big issue now in the midterms? >> from my perspective, yes. what we are hearing the white house respond to from voters is people seeing prices at the gas pump at their car, prices at the grocery store and a lot of the proposals the white house has put forward are targeting monopolies in these industries where a few companies control prices. that is part of their argument. that is something voters are thinking about going into the midterms. midterms are in november. that is a lifetime away. a lot could happen between now and then to influence how voters cast their ballots. kathleen: courtney rosen. for more analysis, let's bring in the head of asia research at anz. i want to get right to the inflation question.
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it hit the bond market again today. it put a cap on stocks today. maybe the dollar has peaked but it looks like the signal is from inflation itself and from the fed and from the ecb even. more rate hikes, may be bigger ones until inflation starts coming down. >> it's pretty much a given that rate hikes are coming and the fed is moving in increments and the ecb might take off with a 50 basis point move but in terms of inflation, it has not peaked in europe because europe is facing much more severe inflationary impulse as a result of the soaring energy prices that they have to pay. for the u.s., there are increasing signs that inflation, at least from a headline year on year basis, has peaked and we expect that to gradually come off. we will still be above fed's target but at least we are moving in the right direction and that is part of the reason why the dollar has pretty much
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peaked. the fed is committed to delivering three more basis point hikes. pretty much all of that is already priced in. therefore, i believe we have passed peak fed hawkish and is and as long as the fed delivers their signal, that is not going to be supportive for the dollar in my view. kathleen: what about the recession fears? we know some of the fed officials like rafael bostic said we cannot be restless. the door is open to do less but recession is what some people view as bad for stocks. if there is a recession, some people say it is good because then you start pricing in the recovery in stocks and rallies. khoon: our baseline case is we don't see a recession in the u.s. but markets are increasingly worried about the possibility of one. if the u.s. were to go into a recession or hard landing,
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initially, obviously, it's going to be very negative for risk assets and docs have further down to go. while we flirted with bear market territory for the s&p, if there are signals that the u.s. is heading into recession, we will be back in bear market territory before we know it. we will get a short-term spike in the u.s. dollar and that is what happened in the initial stages of a recession. pretty soon after that, the fact will prevent and that will be the catalyst for the dollar to then resume its slide and then eventually, once we get close to the bottom of the recession, that is when the signal has to start rallying again. haidi: as we see u.s. yields surging, does that put a cap on the recovery that we have seen in the yen? we have seen that return of both the yen and the -- in terms of catching up with the haven
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mand for the dollar. khoon: the yen is pretty much moving in line with yield differentials between u.s. treasuries and jgb's and jgb's in with the boj firmly committed to the yield curve cap of 0.2 5% on the 10 year, it's really where the u.s. ten-year goes that will determine how dollar-yen moves. and you know, yes, when risk assets were under pressure, we did see a little bit of a relief rally in the yen but the yen is not a strong safe haven as it was in the past. if u.s. yields were to continue much higher, we would see dollar-yen hitting past 130 and further higher but it looks increasingly likely that perhaps we are starting to release a top in terms of where u.s. 10 year yields will go. from here, i see 127 to probably 130 range in the coming months.
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haidi: stay with us. we will be back with you to talk about china. in the meantime, we have lines out from rafael bostic. coming from an interview with marketplace he had he says the idea of a september pause is not tied to any idea of a looming market rescue but there could be a significant reduction in inflation this year. a pause in september may make sense because the markets have reacted much more strongly than anticipated, giving some credibility to the idea that perhaps the economy will also respond to the feds rate hikes more sensitively than had previously been anticipated. he is pushing back against this idea that this should be construed in any way as a fed put or a belief that the fed will come to the rescue of markets. this is a good tale for story. that is not how it is driving that, thinking about policy. we will get a bit more on that. let's get you the news with su
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keenan. su: we start with opec members some of them are floating the idea of suspending russia from an oil production deal. delegates believe western sanctions will undercut moscow's ability to meet crude target. it could pave the way for other members like saudi arabia and the uae to pump a lot more. the alliance says it will hold onto the plans despite the restrictions on russia. hong kong's next leader says the city will face difficulties before it can reopen the border with mainland china. it says the financial hub will retain its current electoral -- for a long period. the comments came after his four day trip to beijing where he met separately with president xi jinping and premier li keqiang. we will take -- on july 1. lloyd austin and china's defense minister are discussing a
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potential meeting in singapore. the biden administration is prioritizing keeping talks with beijing alive. the u.s. has been unsuccessfully seeking a call with a higher ranking general from the communist party military commission. president biden says he will meet with congress on gun control legislation after the massacre at an elementary school in texas. he made the remarks while welcoming the new zealand prime minister, just and ardor, to the white house -- the new zealand permanent search of the white house. he says there is a chance to compromise between rational republicans. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. kathleen: thank you. as e.u. sanctions hit russian oil, why that could spell the
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end of the opec plus production. analysis coming right up. this is bloomberg. ♪ what if you were a global bank
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>> take a look at chinese adrs, particularly when it comes to these tech and internet platform stocks. they did jump to bump out the monthly losses. better than expected eco-data and the potential recovery for this factor reassuring some of these investors. we saw chinese stocks capping their first monthly gain since october. in particular, some gains across electric carmakers as well. up by 5%. china announcing that 50% cut in the purchase tax for low emission passenger vehicles so that is really driving at this point a little bit of a recovery rally. it remains to be seen whether this one can be sustained. an easing of chinese covid restrictions could alleviate growth concerns but analysts are questioning whether the west is over. with us is our guest who is worrying over growth, seeing that the yuan is trading weaker.
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markets expecting further easing. we appreciate you sticking around for us. the fact that we continue to see the slump for the yuan, does that tell us there's still quite a lot of pessimism over the state of the economic recovery? >> the market is still pessimistic and still believing that the yuan will continue to weaken. i am not of that view. i believe the yuan can recover and indeed will rally into the target of 6.50 and my reasoning is quite simple. yes, the chinese economy has had a very challenging period in the last couple months. the lockdown in shanghai and all the challenges that entails. we are starting to see is off and we are starting to see a rebounding economic activity and the better-than-expected pmi numbers yesterday -- the unofficial pmi numbers coming
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out later this week will further provide copper nation of that -- confirmation of that. as long as china will continue to ensure that outbreaks are contained, we will see quite a decent rebound in chinese economics in the coming months to the stimulus measures being put in and this will propel a relief rally in the one in my view. -- in the yuan in my view. haidi: we have seen as low as 3% and possibly a little bit lower against that target which clearly was people if not all are not expecting. >> i think it is very clear that it is extremes -- increasingly difficult to meet the growth target for this year but it is still possible for china to hit maybe 4.5 to perhaps the five range. provided all the stimulus tools they have employed, you know, really get deployed.
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as long as they can ensure that there are no there outbreaks or lockdowns, particularly in major economic hubs like shanghai, we will see a strong rebound. >> you downgraded your forecast for the aussie dollar, new zealand dollars, other asian current forecasts because of slower global growth, tighter financial conditions, and china's cold strategy. china is a pretty important driver. >> china is a very important driver and export numbers will reflect the partial lockdowns that have occurred but you know, with restrictions easing and with ports in shanghai pretty much the full capacity, we should see those export numbers start to recover. that's not forget some of the export numbers and economic data coming out of asia. it is still being impacted by
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the lockdown in shanghai. the upcoming months should see a meaningful bounce and we are seeing tentative signs of that coming up from the chinese. kathleen: it is good to stop on an optimistic note. thank you so much. khoon goh at anz. you can get around up of the stories you need to know to get your day going in today's edition of "daybreak." terminal subscribers can go to dayb and it's also available on mobile in the bloomberg anywhere app. you can customize your settings so you only get the news on industries and assets you care about. this is bloomberg. ♪
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>> auto parts supplier marelli has selected the current owner as its sponsor in order to restructure the business. they are looking to cancel about $3.5 billion in debt. will be watching the energy sector after a japanese court ruled in favor of an antinuclear citizens group in hokkaido. it agreed the nuclear plant is not safe to operate due to earthquake and tsunami risks. moving onto south korea, the president's conservative party is expected to keep control of the mayor's office is in seoul in his first election test just three weeks or so after he took office plus the countries trade data for may are set to be released in around 45 minutes. haidi. haidi: special was adduced to the -- special visitors to the white house. we saw the korean super pop, kapok group, bts visiting the
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white house at president biden's invitation to draw attention to and provide a rallying cry against the asian hate crimes that we have seen and it has been a big rise. a 77% increase in crimes and violence of -- against people of asian descent. in new york city, there's been a number of high-profile hate crimes and violent crimes directed at people of asian descent so bts saying they are devastated by the surge in hate crimes, hoping that their meeting with president biden will help bring attention to the efforts to curb hate crimes in the u.s. and elsewhere and they wanted to give this an opportunity to mend their voice to this cause. -- lend their voice to this cause. kathleen: they are young and popular. for everybody, i grew up in the pacific northwest. the tacoma area. any asian families who grew up
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there -- i also lived with a very big asian population and it seems like they did not -- they did not hear about the same kind of thing as much. it's very difficult to understand why. let's hope it's not difficult to stop and let's hope efforts like this, the message of love can make a difference. let's get a quick check of the latest business flash headlines. deutsche bank and dws have been rated by frankfurt police. the search was related to allegations a so-called greenwashing -- of so-called greenwashing by the asset manager. shares grew more than 5% on the news. singapore airlines says it is committing to a strategy of working with international partners and operating the overseas have after covid exposed the financial dangers of not having an aviation market. the ceo told us the airline
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is open to opportunities and will evaluate potential synergies. >> they do not have a domestic market and we compete internationally with the best out there throughout this 75 years. what happened is that we became extremely good at international competition in terms of our product leadership, service excellence, and network connectivity. >> bloomberg learned that hsbc is offering its staff the chance to get electric vehicles using their pretax paycheck all of its 35,000 employees are eligible the park and can choose between a two-year and four-year lease and can buy the car from hsbc at the end of the contract. sound good? haidi: coming up next, oil's rally sizzling on fallout from russia's ukrainian invasion. the e.u. banning most imports.
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meeting their side of the pack. we have the details, next. this is bloomberg. ♪
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♪ >> "daybreak asia," you are watching "daybreak asia," looking at trading in asia, bond markets at well. comments from atlanta fed president raphael bostic to and -- to cnbc commencing there could be significant reduction in inflation this year. he is calling for a pause on fed rate hiking in september, markets split on whether we'll see if 50 basis point move to the upside. we are continuing to see treasuries a little weaker. we are seeing more flat trading at the start of trade. they did rise the most in more than three weeks in the previous session. aussie and kiwi bond yields looking a little higher. kathleen: opec delegates believe
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western sanctions will undercut moscow's ability to meet targets. rob, what does this mean for global oil supply? as opec getting this right that maybe russia is going to have problems now? rob: good morning. it is very unclear at the moment . at the moment, russia still has an agreement with them. but russian oil is not very well-liked by western buyers. it is uncertain what this will mean for global supply at the moment. there is limited supply with anno act to increase apply to uae and saudi arabia, also having ability to increase supply further. it is a wait-and-see at the moment. it has moved markets this morning.
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haidi: is gazprom likely to cut off more european buyers? >> the gazprom gas thing is different. gazprom said these european buyers haven't paid according to its wishes. it said earlier today that it would not cut off any other buyers if they had paid according to its requests. at the moment, it doesn't look like other european buyers will the affected by the cuts. of course, these are massive sources of income for gazprom. haidi: our asia energy editor rob verge on. plans are afoot to implement a more permanent covid infrastructure that could require daily testing of
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citizens, possibly joined by robots. i'm joined by chief asia correspondent stephen engle. i am envisioning this in my head and thinking what we would have said if someone told us this would be our future just a couple of years ago. stephen: i don't think anybody wants to have their naval cavity swabbed by robots. haidi: [laughter] stephen: but i digress. there is the fact of the developments and that developed that borders on site inspection. the facts, june 1, today's the day that authorities allowed all manufacturing to resume in shanghai. people can start using public transportation, people can come and go from low-risk housing compounds. beijing will allow shoppers into shopping centers. so, there is some semblance of of a return to normalcy. but let's talk about kind of the new normal.
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and that means daily testing or nearly daily testing, and building the infrastructure. right now, tens of thousands of these kiosks on street corners are being built and put in place in china, for the goal of essentially having every single citizen in china -- is a big country, 1.4 billion people -- to be within a 15-minute walk of one of these kiosks to be tested. you can see, in the big cities, you would be no farther than 15 minutes away from one of these kiosks, so you could get tested and immediately determine whether you are negative or positive. if you're negative, you can go shopping centers, you can go on public transportation. chimoy university, according to our sources, have developed robotic swabbers, so some of the robots at these kiosks will swap
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you robotically. kathleen: it depends on the number of cases, but we do know that we need people getting out, even if it is a robot swapping them, to get out and shop to see the pmi pick up more than it has so far. negative, getting better. what about small and medium-sized businesses? stephen: the official pmi yesterday, still in contraction, but showing signs of improvement. it is really reflected because of the shanghai lockdown. and that is what this constant in infrastructure, institutionalized testing, it is trying to prevent another economic shock because of the covid zero lockdowns. because one leads to the other. pmi today is coming from what represents a survey of smaller enterprises and a lot of exporters. we are likely to get a similar kind of reading, better, but
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still in contraction territory. and we saw from the sub-indices of manufacturing and pmi yesterday, they asked larger state-owned enterprises and they were more confident with a reading of 51. small enterprises -- 46. we are likely to get 47 today on manufacturing pmi. kathleen: chief north asia correspondent stephen engle. the japanese prime minister says the country needs to focus on different areas of growth as he laid out prospects for this so-called new form of capitalism. our bloomberg reporter in tokyo, isabel reynolds, joins us. what key takeaways are you getting so far this new form of capitalism? isabel: the prime minister last night unveiled a draft of the plan he had been talking about for months, since he took office in october. the basic tenets are to create a more equitable society and at the same time, encourage growth.
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there aren't really huge surprises in this plan, it was released to the media in advance. but one important thing to say upfront is is that a lot of the ideas that have caused concern in the financial markets, seeming kind of market unfriendly, are not in this plan. they have at least been shelved for the time being that said, he had floated in the past things like raising capital gains tax, things like ending the legal requirement for quarterly reporting and another when he mentioned was regulating share buyback. those are on hold for now, but what it does call for his more investment in human capital, and training, and certainly an effort to get households to invest their money, rather than just save it in the bank.
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haidi: there has been a recent economic security build which has been quite interesting. does that at to the heart of one of the big concerns for the government in terms of assuring user growth? isabel: yes. they are somewhat related. and in a political sense, it is very important to maintain growth and make society more equitable, and in an effort to retain political divinity in japan. i think he has looked at other countries that have really been wracked by divisions and political fights. and that hasn't really happened in japan at this point, and he wants to make sure it doesn't. that is one of the major aims behind this effort for a more equitable society. kathleen: bloomberg government tokyo in -- bloomberg government reporter in tokyo isabel reynolds. headlines from an
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interview present biden gave to the new york times. president biden said the u.s. is not sending armaments that cove from ukraine into russia, making people wondering what we will send them. he is telling "the new york times" that the u.s. will give ukraine more advanced rocket systems. he does not seek a war between nato and russia, will not try to bring about putin's ouster. a couple months ago, president biden off-the-cuff said something along the lines the u.s. would. still ambiguity in what kinds of weapons systems the u.s. team at the white house is willing to send ukraine at a time when they desperately need weapons to fight back against missiles russia is firing into ukraine, and destroying major cities with. haidi: we are seeing at the moment the new australian cabinet being sworn in, in
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canberra. we had the swearing-in of some of the first ministers just ahead of the board meetings. we had the foreign minister, penny wong, being sworn in. you can see her on the screen. she will fly out to tokyo for the talks, and we are seeing a full cabinet decided on, pointed end now being sworn in. they include the deputy prime minister taking his portfolio of choice, which is defense, happening today. penny wong is the foreign minister. jim chanos is taking the treasury seat, patty gallagher, -- betty gallagher, taking tourism. this is a huge step toward gender equality and representation in australia's
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government. the prime minister's government will have a historic number of women. the former government add nine women in a 24-member cabinet that we are seeing 10 women to be sworn in as ministers including foreign affairs, finance, home affairs, indigenous affairs and the environment. let's get to su keenan with first-word headlines. su: president biden met with fed chair jay powell at the white house tuesday as part of an effort to reassure americans on the economy, and surging prices. biden used the rare meeting to declare he respects the fed's independence, and shifting responsibility for maintaining inflation add of the u.s. elections. eurozone inflation, intense fighting and debate at the ecb about how rapidly to raise interest rates from record lows. consumer prices jumped 8.1% from a year earlier in may, exceeding
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estimates. the acceleration, driven by food and energy after the invasion of ukraine sent commodity prices soaring. the next ecb meeting happens june 9. sri lanka's new prime ministers proposing to raise tax rates as conditions for a bailout by the imf. the government is trying to convert to race that existed before they were cut in 2019 and failed to stimulate the economy. sri lanka has to raise revenues and this is as the economic crisis that deepens, with inflation rising close to 40% in may. taiwan says china has made the second-largest incursion into its air defense zone this year. the defense ministry says 30 jets entered the area, including more than 20 fighters. taiwan deployed air defense missiles late monday in response. it came as u.s. senator tammy duckworth arrived in taipei to
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meet the taiwanese president. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. ♪ kathleen: coming up, we hear exclusively from an indonesian conglomerate as the company pivots from mining into renewable energy and electric vehicles. this is bloomberg. and in dire back.
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>> ceo anindya bakrie is embarking on an ambitious project to pipit to electric vehicles. bakrie & brothers tbk was founded by was founded by his grandfather. he tells us about the next step for the company. >> you come from an old group, an 80-euro start up, i call it.
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>> right now, we focus on certain traditional businesses. but i think the future is inevitably going to be renewables. what the growth has seen is that indonesia has a lot to offer for this net zero transition. i like to say indonesia can be the saudi arabia of renewables and diversification. the group embarked on electrification starting with public transportation, buses. in the next seven years, they are going to have about 10,000 buses to be electrified. and we are front and center to lead the change. another thing that i see that is quite interesting is that now, there is a shortage of processed nickel. we would like to do it in an esd way, because bakrie & brothers can actually do it.
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indonesia has everything you can think of as far as renewables -- hydro, solar, ocean, wind, what have you. what we are starting to do initially is billed nickel capital using hydro that is already available in indonesia, and trying to serve the u.k. market. and in two or three years, probably weekend continue from nickel to battery cells with a partner. at the end, we will be the leader of that. that is going to be quite exciting, and maybe going to motorcycles. >> you are looking at building an ecosystem. for your electric buses, you partnered with china. are you looking at further partnerships? anindya: this is globalization at its best. we are partnering with blue id, starting with buses for the modeling, packaging, and maybe we look at passenger cars or
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mortar cycles at the end. but from battery cells to nickel, we are working with the u.k. to make sure that we can supply the nickel capitalize they need it. but once you learn how to do it in an esd way, if you can do it the right way, hopefully, you can also serve the market, including yourself. right now, we are in the process of trying to power our battery plant, our gigafactory in the u.k.. hopefully come into our three years, we can make ourselves 16 to 20 gigawatts power. we will be rewriting the supply chain. at least that is what we are aspiring to do. >> you lead a team to meet with elon musk recently. what type of investments could be looking at in terms of his contributions to indonesia's green ambitions.
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what would it take for elon musk and tesla to make a commitment to enter the space in indonesia? anindya: just like any other businessman, and i can't speak on his behalf, but price is important. the nickel price can be highs sometimes. i having a range is important. number two, certainty of supply. because some manufacturers will probably do 80% using a battery in 20% mc, or the other way around. so supply of nickel is important, just like any other materials. and i think also that the way you process it is very important. you cannot just sell ez cars, but the process is not using the net zero in an esg kosher way. haidi: you are leading the group after a successful stint.
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in your 20's, you were mobilized to, i guess revive a struggling tv station good you did that in two years. how are you looking at successions within the bakrie & brothers group? anindya: covid accelerated a lot of things but certainly the health sector, though global health are -- global health infrastructure is different. now, you fill the younger generation has to step up. when i came to bakrie & brothers about three years ago, i was tasked to see how to transform this 80 --year-old start up -- 80--year-old start -- 80-
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year old startup. the dna of the group. very exciting. it cannot be done overnight. we are hopeful that bakrie & brothers can be the proxy of the indonesian economy, because we have been there for eight years. haslinda: what is the vision for the company and for indonesia? anindya: the vision for the company is our way battery group can get a portion of the indonesian economy when it comes to modernization, industrialization and indonesia, i think in about 20 years,, should be not only in the g20, but we hope to be top five in g20. we want to get there, but how are we doing it? we went -- we want inclusivity. we want to make sure the welfare
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of indonesia progresses. there are 275 million people. half of them are millennials. very soon, they are going to leave the country. but the moment is in these 20 years, to make it. haidi: bakrie & brothers ceo with haslinda amin.
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♪ ♪
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kathleen: now a quick check of the latest business flash headlines for general properties expects to defaulted sister's on november 19, 2019 -- default on its november 19, 20 19 notes. it blamed the lockdown and unfavorable market conditions for its cash crunch. general properties has taken a number of steps in recent months. zhenro second-quarter revenue rose 3.9%. analysts projected 16.1 billion. challenges for the high-growth company as personal spending falls on computers. a buyer is looking for approval to buy bp oil and gas assets, valued at $25 billion by bhp.
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woodside also faces backlash for its climate report and reduction -- emission reduction plan. haidi: coming up, china moves to reduce zero covid measures. we discussed with daniel gerard, of state street capital. asian markets have slipped in early trading as the u.s. is ending a roller coaster ride of a month. this is bloomberg. ♪
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haidi: this is "daybreak asia," counting down to asia's major market opens. wars about persistent inflation, higher rates, the fear of inflation. good news out of china. kathleen: hoping to get good news out of korean export numbers fairly soon. china still in locked out. let's get over to annabelle, she's going to help us get right into the markets. annabelle: kathleen, a very volatile month across the month of may, setting asian stocks up for a week start -- weak stuck to june trading -- start to june
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trading. japan about to come online. the nikkei taking a few seconds to come online. we do have japan as well sending to have a -- there we go, assuming to come up now. nikkei trading fractionally higher at the start. australia, 1% off. new zealand as well, looking weaker today. korea is closed for a public holiday. for a look at how cash treasuries are coming online for the u.s. treasury market, starting back up, seeing yields rise at the start of trade. there is a similar move that we are sitting across japan, australia, new zealand, but the g10 fx space, we have seen euro area inflation push to an all-time high. kathleen: if korea were open and the market were imply, i think
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we might see a little uptick in the korean market because south korea numbers came in stronger than forecast. up 2.31% versus the estimate of 18.4% year-over-year. those are already double-digit year-over-year numbers, those suggest there is sufficient purchases of serene -- of korean goods by other nations around the world, the trade deficit narrowing from -- down, that is what i am trying to say. imports, looking like strong consumer demand, up year-over-year for the month of may. if and when the lockdowns disappear or at least get fewer in china and the pickup consumer demand, imagine what this could do for korea's exports. haidi: let's bring in daniel
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gerard for analysis, a multi-asset strategist at state street capital. volatility characterizing the previous month and ending up with not much of anything. going into the new month, seems we have the same themes. is there sustainability to any rally that we could see? daniel: we need to be worried in the longer term. when we look at what is happening, economic activity has been good, earnings have been good. what we saw was multiple compressions. if we expect to see a better market, we need to argue one of two things, that we are going to see extended multiple expansion again or stocks can still do well if the multiples are compressing, but we need earnings to be very, very good,
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even better than expected. both those things seem unlikely. especially as we go into this period that we have the are few times seen in modern history, of raising rates and pulling down the balance sheet of the fed to fight very stubborn inflation, it is going to be a tough road ahead. haidi: if you are not looking for outperformance when it comes to earnings, what is your strategy do not get that your strategy -- what is your strategy for the next few months, inflation hedges? daniel: we need to recognize this market is not trading to fundamentals, but it will. it will be connected to fundamentals soon. that means we need to look for quality. we need to find what should do well in a market like this, which is companies with pricing power, large cap companies that are unable to secure financing -- that are able to secure
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financing for a decent price, that have good brand exposure, inflation hedges. there are really quality, profitable companies at this point. high-tech. health care is a great play. u.s. equities in general have a lot of those characteristics and even some within the large u.s. space is aligned with that. so are parts of consumer staples, especially large companies with pricing power that are more geared toward [indiscernible] goods. energy and base materials will do well as well. haidi: dan, stay with us. we are going to look at the treasuries open bell because we saw extended pressure on bonds. we got the record european inflation right. annabelle: the g10 debt space come a big focus this morning. five minutes into trade, yields continue to move higher after
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they hit the most in more than three weeks in the previous session. we are seeing the 210 yield curve steepen. and euro area inflation suddenly being a focus. kathleen: let's get back to global markets and daniel gerard. the global bond market is extending its widening yields bit u.s. treasury 10-you didn't do much in the month of may. it was volatile. you said right now, liquidity is good. the balance sheet runoff is going to get big quickly. you mentioned stocks that will hold up very well. will they hold up when liquidity is disappearing? for the past few years, so many people said that is what driving -- what is driving this? crazy bull market in stocks? daniel: absolutely right, this is what we should be focusing on. what is going to happen with liquidity in the market? a few things are important to watch. one of those is that we don't
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know what the treasury means yet in terms of borrowing. from the fiscal side, it will be an important indicator to see what liquidity looks like in the market but second, the reverse repo facility that is taking in this tremendous excess of cash printed over the pandemic and returning bonds to the market, that is over $2 trillion of default liquidity on the sidelines. so, reserve balances are starting to work down. but there is still so much, much more than is going to initially be pulled down from the balance sheet runoff. i think it is still there in the important part is that rates at these levels are going higher, but they are not restrictive. we can still see rising consumer activity and real wage growth. the fed is going to get frustrated quite quickly of this -- if this is all they are going to do. i think that is what people
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attractive price into the market. kathleen: when you look at earnings in the sense that there will be a slow down, a softer landing will mean a slow down at some point, investors start looking past it and stocks start rallying again. our people going to get to optimistic to quickly? daniel: yes, they are getting too optimistic to quickly if they think we are going to rally out of this. i understand there is a discounting mechanism, but forecast seven rolled over, let alone earnings. it is really hard -- forecasts haven't even rolled over, let alone earnings. it is really hard to see economic activity getting below what is this long-term decent rate for global growth and for u.s. growth. back to my point in the beginning, investors are going to have to start pricing in some of this more challenging
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environment to head before we get closer to the bottom. kathleen: daniel gerard, thanks for giving us good ideas like health care, dan gerard from state street capital. let's get the su keenan with headlights. su: u.s. treasury secretary janet yellen has given her most direct admission yet that she made the wrong call last year when she predicted elevated inflation would not pose a continuing problem. janet yellen told cnn she misjudged inflation, saying she didn't fully understand the circumstances and that unanticipated shocks later worsened the situation. hong kong's leader says the city will face difficulties before it can reopen the border with mainland china. he also says the financial hub will retain its current electoral system. his comments came after a to beijing where he met separately with president xi jinping and the premier. he will take office as the hong kong chicken -- chief executive
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july 1. i want that china has made the second-largest incursion into its air defense zone this year. the defense ministry says 30 jets entered the area. taiwan deployed air defense missiles late monday in response. it came as u.s. senator tammy duckworth arrived in taipei to meet with the taiwanese president. sources say aides to u.s. defense secretary lloyd austin and china's defense minister are discussing a potential meeting in singapore. it is a sign the biden administration is prioritizing keeping talks with beijing alive. the u.s. has been seeking a call with a higher ranking general from the communist party central military commission. members of k pop group bts have met with president biden at the white house, in order to bring attention to efforts to curb
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hate crimes in the u.s. and elsewhere. the fbi says 20/20 in the beginning of the pandemic marked a 70% increase in crimes and violence against people of asian descent in the u.s. a bts member says he hopes the visit will be a step forward in promoting respect and understanding. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. ♪ haidi: coming up, i singapore airlines committee and a strategy to work with overseas partners to come out of the pandemic. we hear from the ceo this hour. next, the ecb debating how rapidly to raise rates amid on inflation wrecked -- inflation records. this is bloomberg.
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landesman --
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♪ haidi: president biden held a meeting in the oval office with fed chair jay powell to reassure americans on the economy and prices. biden says he respects fed
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independence, while urging the central bank to tackle inflation. >> to address inflation starts with a simple proposition -- respect the fed's independence. they have a laser focus on addressing inflation, just like in. and -- just like i am. end with a larger number of board members just confirmed, i know they will be addressing prices for the american people. haidi: inflation around the world continues to hit records. let's get analysis from our chief asian correspondent that we have to talk about the european rating. >> in the euro zone, you have record high inflation there. i do have interest rates on a record low. it means monetary policy is only going one direction. it is only how much they will move and at what pace. 25 basis point moves to push
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away from the fed side of things. some voices of the ecb policymaking side say they made -- may need to go further. what is happening is all about food and energy, groceries and the invasion of ukraine. there are forecasts that inflation would peak a bit, but it would take a while to get back down to the ecb 2% level. europe like other parts of the world are getting on board the monetary policy tightening bandwagon. kathleen: i don't think the cbn christine lagarde ever thought her inflation rate was going to get this high, nor did the fed inc. there's would get to 8.5. when biden sits with jay powell and says, i know it is your job to do this, does it send a message to the central bank? a markets, that is the case, but it doesn't seem it changes much for jay powell, what do you see? enda: i didn't pick up much of a policy signal from that meeting,
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kathleen. it speaks to the gravity of the situation when you have the white house calling in the head of the fed. president biden did go out of his way to say the fed is independent, but the u.s. has a serious inflation problem and policymakers need to get on top of it. and there are u.s. elections coming up later in the year. in terms of the fed, they have already turned hawkish to moves, 50 basis points, they are expected to do that again in june and july. not clear what different powell is going to be doing, but other central banks will see that you have the white house calling the head of the fed, it doesn't show the gravity of the situation and it is a problem facing central banks all around the world. kathleen: the central bank community hears this around the world. chief asia correspondent and current -- and carbon -- enda
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curren. a bit of a bounceback -- european stock futures up .7%. msci europe though, down .9%. german stocks, opening, up .7%, but again, this big move up in inflation, a drop in european bond yields, we saw that in europe, and that fed interview as a treasury selloff, all these things going on with oil, it is not surprising to see stocks falling back under that and mostly getting a little recovery as they wait to see what happens next as well and investors run the world are watching oil. it is steady in asian trade as investors assess the future of opec-plus unity is the group gets ready to meet thursday to discuss supply policy for july.
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we are joined by bloomberg energy and commodities editor andrew jane's -- andrew james. what if opec is exempted from that what about exemptions from opec-plus targets? andrew: russia is the second-most influential member of opec-plus after saudi arabia. that makes it difficult to read a group-wide agreement to raise production which would replace russian supplies. we have this "wall street journal" story suggesting opec members are exploring suspending russian participation in the monthly oil supply talks from opec-plus. that could potentially pave the way for other members to start pounding more. a lot of the members are really
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struggling to ramp up production. the two that have scope to pump a lot more oil at the moment would be saudi arabia and united arab emirates. up until now, the saudis -- the saudi foreign minister last week said in. most that there wasn't a shortfall of oil -- said last week that there wasn't a shortfall of oil. kathleen: i wanted to ask on russian gas exports to europe. mario draghi talking to reporters today, saying they seem to be different deals, different standards, more gas exports got off to germany, netherlands and others. andrew: that is right, it is a bit of a patchwork. a lot of bigger buyers have
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found ways to supply with russia -- to comply with russia's new terms under still getting gas from a german company, but smaller buyers are getting cut off. russia just suspended gas contracts to denmark and netherlands. the dawning of the danish one is interesting because they are about to vote on any eu military pact which would deepen their integration with e.u. that fits a pattern of putin using energy exports as a weapon. he cut off power exports to finland after they said they would apply to join nato. kathleen: interesting to see european companies standing up to this in spite of the pressure. our energy commodities editor andrew jane's. daybreak a's available on your terminals and on mobile on the bloomberg anywhere app and you can customize settings so you
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♪ haidi: a quick check of business flash headlines. bloomberg has learned hsbc is offering u.k. staff the chance to lease electric vehicles using pre-check paychecks. all 35,000 employees in the company are eligible for the perk. they can choose police and by the car from hsbc at the end of the contract. deutsche bank and its affiliate have been raided by police in frankfurt. sources say it is related to allegations of greenwashing by the asset manager which is been accused of inflating its credentials. deutsche's ba -- deutsche
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bank declined. a property company expects to default on a note, the developer blaming the shanghai lockdown and market conditions for its cash crunch. jay ross says it has taken steps to address liquidity issues over the past few months. kathleen: june 1 marked a turning point for monetary policy in the u.s. as quantitative tightening begins. the new york fed projects $80 billion per month of balance sheet runoff through 2024. the soros fund manager ceo don fitzpatrick says while row session is in devon up, the u.s. economy can withstand the challenges. >> i think the u.s. position right now looks reasonable. but i think we can't take things for granted, things like our reserve currency status. that is not a given.
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taking that for granted could be parentless --p pp--- perilous. china is going to pose persistent challenges u.s. for decades, but i think they will come out of those challenges. >> you and i have served as advisors to a new york federal reserve kind of committee. what is your view of the new york federal reserve are the overall federal reserve? do you think they missed the boat on inflation or did the best they could? >> in hindsight, they should have moved earlier. i think they are doing their best to catch up now and you are going to see them move aggressively. 50 basis points at the next three meetings is already priced
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in. i think you are going to see them rush to get rates up to 2%, 2.5%. then, they are going to reassess the economy. they had a hard job. they were worried about inflation, but were also trying to support a population coming through a pandemic. haidi: more from david rubenstein's exclusive interview with soros fund management ceo dawn fitzpatrick. as we get into this new trading month, one lesson learned over the past month is, valuations and the trepidation with which you approach speculative assets, including the margins of tech stocks. bloomberg economics is suggesting a many bubble has been busted. look at this chart. valuations in the correction
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that we are seeing is read times faster than what we saw in 2000. we keep going to history as a guy. but one thing to remember is, we have never seen this kind of attempted recovery out of a pandemic, and out of dealing with big inflation concerns that are attributable to credit causes, like the pandemic, supply issues, the war. -- kathleen: according to bloomberg intelligence, they are looking at elevated inflation, supply chain disruptions and earnings are forecasted to lower until 2023 because of margin outlooks, higher wages and spending more for materials. they give a list of large companies with negative attitudes about this -- amazon,
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♪ su: this is "daybreak asia," with first word headlines. some opec members are reportedly exploring the idea of suspending russia. "the wall street journal" says delegates believe western sanctions will undercut moscow's ability to meet crude targets and could pave the way for saudi arabia and the uae to pump a lot more. the alliance says it would likely hold firm on its oil production plans despite restrictions on russia. eurozone and nation accelerated to a high, intensifying debate at the ecb about how rapidly to raise interest rates. consumer prices jumped 8.1%. that exceeded median estimates. the acceleration driven by food and energy after the invasion of
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ukraine sent commodity prices soaring. the next ecb meeting happens june 9. in the u.s., president biden met with fed chair jay powell at the white house tuesday as part of efforts to reassure americans on the economy and surging prices. biden used the rare meeting to declare he respects fed independence, while shifting sponsor ability for containing inflation. u.s. inflation is that nearly its fastest pace in nearly four decades. president biden says he will meet with congress on gun control legislation after the massacre at an elementary school in texas. he made the announcement while welcoming the new zealand prime minister to the white house. i didn't says he believes there is a chance of compromisers with rational republicans including senate majority leader mitch mcconnell in texas senator john cornyn. sri lanka's new prime minister
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proposing to raise tax rates to meet conditions for a bailout by the imf. the government is trying to convert to rates that existed in 2019 and a failed bid -- before they were cut in a failed bid to boost the economy. this is the economic crisis deepens, inflation rising close to 40%. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. ♪ haidi: we are just getting asian pmi's crossing the bloomberg. this is the picture on the back of china pmi numbers that we had, showing a bit of a dead cat bounce. japan, we are seeing a little uptick just above 50 three.
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thailand staying unchanged. a fall when it comes to activity and sentiment indicated for taiwan. across other parts of southeast asia that we are watching, weakening in myanmar, weakening in the philippines as well and malaysia. vietnam the outperformer come a big jump from 51.7 four manufacturing pmi. let's look at -- for manufacturing pmi. let's look at china and midsized companies. annabelle: this survey is due in the next hour. it does track smaller companies. we are expecting a slight rise in may after 49. it was 46 the month prior. you mentioned dead cat bounce, the bloomberg intelligence team taking a positive look at the picture and saying that the worst of the slump would be behind them and government
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measures to boost production will have impact. china shares listed in the u.s., positivity. if you put up the board, we can look at the nasdaq golden dragon index closing, capping a monthly rise for the first month since october, positivity also from alibaba and baidu. virus cases are dropping in china, loosening virus restrictions, all positive factors for equity markets opening in less than one hour. kathleen: let's move to large chinese cities including shanghai, opening further from lockdown. lands are afoot to implement a more permanent covid testing infrastructure that may require near-daily testing of citizens, possibly by robots. we are joined by chief asia correspondent stephen engle. a big, big project. i wonder if it is going to stop covid. it is certainly going to put people to work, building the
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testing systems and may doing testing. stephen: tens of thousands of these kiosks are being erected right now across china. want to prevent the spread of various variants of the coronavirus into cities. that caused the lockdown because of the zero covid strategy. this is spontaneous celebration that we are seeing now, at midnight last night as shanghai is emerging from its two-month lockdown in the economic damage caused as a result of that, as reflected in pmi's annabelle talked about. make shots at midnight last night, across the city, people taking photos, emerging from this two months of being confined to their homes. it is not just shanghai, as you can see on the map. there are cities in other areas of china and that have been under these covid zero
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restrictions. it is starting to lessen because yesterday was the first time since march that we had fewer than 100 cases nationwide reported. shanghai as of today will resume public transportation, all manufacturing around the city will be allowed to resume manufacturing, beijing will allow some shopping centers to open. but again, as we saw with the testing plans, it is a return to normal, but it is a new normal because chinese authorities do not want to see the virus in large urban areas like in shanghai, so they are institutionalizing testing. they want these kiosks, possibly manned by robots, 2 -- scare i say -- probe one's nasal cavities, swab them i should say. no one is going to necessarily like that, but it is part of the institutionalizaton a public
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testing for some people to get into shops and schools. they will have to have a test at least every 48 hours that has to be done by mass testing. haidi: what a time to be alive. we saw the official pmi showing activity improving, but still in contract and. what are we expecting from private firms,? perhaps the monetary stephen: private firms, perhaps the monetary policy isn't quite as quick? stephen: smaller exporters tend to be more pessimistic than optimistic. we saw that in the print yesterday, state-owned enterprises were more optimistic.
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more pessimism in smaller companies that don't have the scale to whether the restrictions. manufacturing pmi, 47-40 nine, still contraction territory. goldman sachs surveyed local clients in china. they see growth rebounding, those clients. but there are "scarring effects" from the pandemic curve. essentially, heightened policy uncertainty, rising bankruptcies and elevated unemployment, and i haven't even had time to get into the whole hong kong situation, situation developing right now where hong kong airlines lobbied, airlines that fly in and out of hong kong are lobbying the government to reduce the quarantine here to three days and scrap free flight covid testing. not a lot of promise on those before the july 1 celebration. carrie lam says there will be no more relaxation before then, but positive movement at least from
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a lobbying perspective. we will see how the government response, john they just back from beijing, says it is going to be challenging to open the border with china. haidi: our chief north asia correspondent stephen engle, perhaps not much of when it comes to the return of tourism to hong kong and china. but singapore airlines is committing to a strategy of working with international partners and operating overseas hubs as it plots a path out of the pandemic. covid exposed financial dangers of not having a domestic aviation market the ceo tells us exclusively that the carrier is now trying to tie up opportunities. >> when singapore announced further easing of restrictions, opening the lane to all vaccinated travelers and removing all cash requirements, that is another big jump. in april itself, we carried close to 1.5 million. looking forward, we see very strong momentum.
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we are quite confident. >> how much clarity do you have beyond this year? 61 percent capacity for june, what are you looking at for the rest of the year and perhaps 2023? >> we don't give projections. what is important to point out is that we prepared ourselves so well during the pandemic to put in place capacity that we can respond to any demand changes very quickly. >> can you get to pre-pandemic levels without china opening its border? >> china is a very key market, especially for airlines in our part of the world. we used to serve 29 points in the greater china region. the group that is singapore airlines as well as scoot.
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if janet is not open, there will be an impact on airlines overall. however, we are seeing demand from other parts of the world and we are increasing our capacity more than what we used to. >> where would these be? >> for example, new york. >> has the pandemic perhaps prompted you to reassess how business is done? is there a need to diversify markets and be in other markets? >> singapore airlines from day one does not have the domestic market. we compete internationally with the best out there. this is true for 75 years. we have been extremely good at international competition in terms of our product leadership, service excellence and network conductivity. this is a group with an international footprint. we also realize that without a
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domestic market, it has its challenges. that and other changes, structural changes in the industry, that is the reason we put forward the portfolio strategy whereby we have scoot, and our lcc subsidiary, so we can bury -- so we can be very nimble. the other thing is our multi-hub strategy and our investment in the startups. india is going to become a by most expectation, the largest aviation market by the middle of this decade. and singapore is now established as the leading service carrier in india. we want to continue scaling up and ensuring it goes well.
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kathleen: that was the singapore airlines ceo speaking with bloomberg's haslinda amin exclusively. coming up, the luna token taking holders on a wild ride. this is bloomberg. ♪
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♪ kathleen: the chairman of the
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singapore economic development board says the city state has much to gain in times of skyrocketing inflation, market volatility and concern over covid. in an exclusive interview, we were told what is attracting companies to the city state. >> in times of uncertainty and volatility, there will be flight to safety. and this time around, we are seeing that as well. it is true after two years of covid and now, with the threat of an inflationary environment, possibly dampening demand, we are again seeing companies choose to come to locations like singapore because of the environment that we have, the predictability of our policies. yes, in answer to your question, there is a flight to safety. >> the tech clampdown in china, the u.s. and china at loggerheads, is that working to
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our advantage? are you seeing an influx of capital leaving these markets? >> we would much rather have a benign global economy where there is growth in the china and in the u.s. and both superpowers are big economies that continue to complement each other because that would expend the size of the pie, which would benefit everybody. in this particular period, being neutral has its advantages. there are companies that can go international, they have services and goods that people need around the world and some chinese companies are looking to structure their operations in a way which will allow them to pursue these opportunities. >> are these chinese tech companies? >> many of the ones coming to singapore are primarily those tech companies. in china, you pointed up the
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regulatory uncertainty introduced over the last six or nine months as the chinese government seeks to really, i would say, address and mid to get some of the market power of the tech giants. we have seen some of these companies then deciding that they have to achieve -- have to pursue growth elsewhere in singapore is attractive. >> supply chain disruption, companies looking to diversify and set up base in singapore. what are you hearing from companies when they explore alternative places for, to base themselves? >> first and foremost, it has got to do with risk diversification. it is about making sure there is resilience in their supply chains. the incidence and experience of companies over the past two years, even before covid, as
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shown you can't have concentration with -- when all your global production is in one location, one country. it is vulnerable to these unexpected disruptions. now, more companies are developing, instead of just on time, it is really just in case. it is this wave of investments happening that we are experiencing, not just in singapore and southeast asia, but places like mexico. so, there is a regionalization of supply chains starting to take place in singapore and asia are benefiting. haidi: exclusive interview with the chairman of the singapore economic development board, swan gin beh. we have news of the new lunar token potentially being a new
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watt -- new lunana token potentially being a new, wild ride. bitcoin trading slightly up at the moment, .3%. bitcoin, about 31,000, but technical measures always in the view of analysts to the downside. let's get a new view on the luna token taking a wild ride, just days after being distributed to investors. let's get more from our cross asset editor. what is going on with the new lunana cryptocurrency -- new luna cryptocurrency? any lessons learned over the past couple weeks? joanna: it looks like a continuation of the craziness. the token ecosystem got into tens of billions of dollars and melted down to almost nothing at now, they have very quickly
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started this luna 2.0. there are issues about people confused about which ticker, which price to track, is an old, is it the new? the price has been fluctuating between five dollars and $30. started at $17 and went to exchanges and they are seeing very different amounts. at this point, it is looking like a love speculation as opposed to people seeing specific value on it. if you really like daytrading and back and forth volatility, made to get into it. but it really is something that is just bouncing a lot right now and people are coming to sort out what it means, what is next for the ecosystem. kathleen: bloomberg cross asset reporter joanna holsinger. plenty more coming up on "daybreak asia." this is bloomberg. ♪
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♪ haidi: we are about a half-hour away from the start of training in china and hong kong. asia stocks, big inflows into the mainland. equities rose over the past three sessions. are we seeing this rally driven by flows more than anything
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else? >> yes, to a large extent. we saw 23 billion yuan of combined inflows the past three sessions paid we haven't see that kind of inflows in a very long time that sessions. -- past three sessions. we haven't seen that kind of inflows in a very long time. the shanghai csi 300 is recording the longest winning streak since june last year. overall, fundamentally, obviously, the shanghai lockdown [no audio] easing, and also, positive news from beijing on the covid front is open sentiment. but for a lunch of traders we are talking to, they are jittery, not knowing when the momentum will end. this is capturing a window of
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bullishness and putting bets in and out quickly. that seems to be the trading strategy now. kathleen: tanya break down investor optimism? retail trade? institutional? what is driving this? >> it seems to be more of a fund management side in terms of bullishness. we have seen a few hedge fund managers telling bloomberg they are turning bullish and they were bearish before. we have seen what the largest hedge funds and saying that they are going to stop putting in that's right now. and they had zero position in chinese equities earlier this year. another hedge fund manager who is top-performing is saying the same thing. europe's largest asset manager saying, with valuation cheap and stimulus continuing to go, and the lockdown continues to be
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eased, those are a good combination, those make a good combination of news to make sure that the return might actually turn positive in the second half of this year. annabelle: and we could see -- kathleen: and we could see a virtual -- stocks we are watching when markets open. alibaba, and baidu, sing over ducks and of monthly losses after easing of lockdowns and better-than-expected economic data. we are keeping an eye on link reit. results are due out today. haidi: killing up, china's easing of its covid restricting prompting market optimism. also, record global inflation numbers.
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plus, morgan stanley equal weight on chinese equities and stimulus measures to boost the economy. that is it for "daybreak asia."
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david: people ask me what is the
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key to being a good investor. i say to work with the best investors you can find. i will take you to meet the greatest investors in the world, the people i would like to have managing my money. >> you have to have the confidence, bravery, and humility.


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